Reverse mortgage in Alaska

Borrowing against your home is possible for Alaska owners 62 and older through a reverse mortgage Alaska loan, with surety fund protection under state law. While you stay in the home, you won't owe any monthly mortgage payments. Most borrowers pick a Home Equity Conversion Mortgage, or HECM, which the federal government insures. Before you check the numbers from this area, you can review how a reverse mortgage works.

After 19 HECMs closed in fiscal year 2025, only 15 closed in Alaska between October 2025 and August 2026. Homes had a median value of $455,000, while the median initial principal limit stood at $207,360 with a 6.0% rate. At closing, the total you can borrow before fees and your current mortgage are paid is your initial principal limit.

The senior property tax exemption of $150,000 in Alaska

Alaska law says that if you're 65 or older, every municipality must cut the first $150,000 off your main home's assessed value for tax purposes. The dollar amount your local government assigns to your home for tax purposes is called the assessed value. Disabled veterans with a rating of 50% or more are also eligible.

For a HECM, that support is significant. Federal reverse mortgage rules require you to stay current on property taxes and homeowners insurance. You're also required to keep the house in good repair and use it as your main home. If you fall behind on property taxes, your loan could go into default. Submit the exemption application by the local filing deadline your municipality sets. That date isn't set by the state.

How to apply in the Matanuska-Susitna Borough

To get the Matanuska-Susitna Borough senior exemption, you have to be 65 by December 31 of the year before. For at least 185 days leading up to January 1, you have to both own the home and live in it as your main residence. Through April 30, 2026, the borough accepted applications that met the deadline. To make sure you don't miss your town's due date, talk to the local assessor early in the year.

Alaska's surety fund and licensing system for reverse mortgage lenders

Anyone brokering or making a mortgage loan in Alaska needs a state license. According to state mortgage licensing rules, the same goes for out-of-state companies that reach you online, by mail or over the phone. It's common here for business to happen by phone. Inside Alaska there are 0 federally approved counseling agencies, and just 7 active lenders recently wrote HECMs.

Alaska Statute 06.60 and regulation 3 AAC 14 set the licensing rules. In addition, every mortgage originator must contribute to a state surety fund. If a loan originator’s illegal or unethical actions cause a loss, a surety fund is the state pool that repays you.

Does the Alaska Division of Banking and Securities have the authority to look into a complaint about a lender?

Yes, the division's staff looks into consumer complaints and acts to enforce the rules when necessary. The Alaska Division of Banking and Securities sits inside the Department of Commerce, Community and Economic Development. Through the national licensing system, the division gives licenses to and examines lenders, mortgage brokers and loan originators. Check your lender's license or tell the division about any unfair treatment before you pay your reverse mortgage closing costs.